(Reuters) – IDEXX Laboratories raised its full-year profit and sales forecasts on Tuesday, betting on higher demand for its diagnostic tests and lab services as more pet owners visit veterinary clinics.
The company expects its annual profit in the range of $9.64-$9.90 per share, compared with its prior forecast of $9.33-$9.75 per share.
IDEXX also raised its full-year revenue forecast to $3.66 billion-$3.72 billion, from its earlier projection of $3.62 billion-$3.70 billion.
Staffing shortage as well as reduced visits to veterinary clinics because of the pandemic-led lockdowns and other restrictions hurt animal healthcare services companies such as IDEXX in the past few years.
But visits to veterinary clinics have started to improve, with analysts expecting the trend to be higher in the second half of the year.
The Westbrook, Maine-based company’s total revenue rose 9.7% to $943.6 million in the second quarter, beating analysts’ average estimate of $934.42 million, according to Refinitiv data.
It reported earnings of $224.2 million, or $2.67 per share, for the three months ended June 30, compared with $132 million, or $1.56 per share, a year earlier.
IDEXX raised the lower end of its forecast for annual organic revenue growth to 8.5% from 7.5% projected earlier. The upper end of the range stayed at 10%.
Quarterly sales at IDEXX’s largest companion animal group unit — through which the company provides diagnostics and IT services for pets to veterinary clinics — rose 10.5% to $866.7 million.
The company expects recurring revenue for the pets unit to grow 10%-11% this year, compared with its previous forecast of 9%-11% growth.
(Reporting by Vaibhav Sadhamta in Bengaluru; Editing by Shilpi Majumdar)